One of the most significant developments in the furniture industry as of June 2025 is the
impending closure of Progressive Furniture, a budget-friendly brand sold at major retailers like
Target and Walmart. The company announced it will cease operations by the end of the year,
resulting in approximately 30 employee layoffs. This decision follows the loss of its primary
supplier in Mexico, which had provided 60% of its products, and mounting challenges related to
rising import tariffs and supply chain disruptions. Progressive Furniture, a subsidiary of Sauder
Woodworking, has struggled to maintain low production costs amidst these pressures. Despite
the closure announcement, the company has committed to fulfilling all existing orders and
honoring warranties until it ceases operations at its Claremont, North Carolina, distribution
center by year-end.
This closure underscores the broader challenges facing the U.S. furniture industry, particularly
for companies reliant on international supply chains. Newly imposed import tariffs under the
current administration have led to significant cost increases for materials such as aluminum,
steel, and lumber, with some tariffs reaching up to 250%. These policies have disrupted supply
chains and diminished profit margins, prompting designers and manufacturers to adopt adaptive
strategies like sourcing locally and revising client proposals.
In contrast, companies like Ethan Allen, which manufacture a significant portion of their
products in North America, have been somewhat insulated from these tariff impacts. However,
they still face challenges due to consumer caution amid trade uncertainties and a sluggish
housing market. Ethan Allen has announced a 4.5% price increase amid competitive pressures,
while rivals more reliant on Chinese imports are implementing steeper hikes.
Overall, the furniture industry is navigating a complex landscape of economic and regulatory
uncertainties, with companies adopting various strategies to maintain quality and manage
budgets in the face of rising costs and supply chain disruptions.

• At Home Group Inc., a Texas-based home decor retailer with over 250 stores across 40
  states, is reportedly preparing to file for Chapter 11 bankruptcy. The company has been
  significantly impacted by steep tariffs on Chinese imports, which have surged to 145%,
  severely affecting profit margins. Despite efforts to restructure $2 billion in debt and
  leadership changes, financial difficulties persist, leading to missed interest payments and
  a temporary forbearance agreement with lenders set to expire on June 30.